Definition
"Sick Sister is similar but not the same as SMT"
"There are conditions with a trending Market where the Sick Sister opportunity will see a move to hasn't transpired yet on one asset or correlated Market meeting or exceeding an old high or an old low"
"The Sick Sister approach or concept that I'm using is that it's going to try to do it later on and you want to put your focus on the weakest one"
Consolidation Context
"The economic calendar this week is heavy-handed on the Wednesday Thursday and Friday so Monday and Tuesday is lacking any real meaningful medium or high impact news drivers so it's expected to have these consolidation dates which is what we're seeing here"
"Whenever you have converging new week opening gaps or real close to one another the Market's going to be real likely to consolidate and go sideways"
"That doesn't mean it can't be traded or you can't find setups in it it just means you have to be much more Nimble and you have to be more versed in Market symmetry"
SMT vs Sick Sister
SMT (Smart Money Technique)
"This high is higher than this one whereas this high is higher we have a very specific time of day and we're also looking at this Divergence"
Sick Sister Approach
"The Sick Sister approach or concept that I'm using is that it's going to try to do it later on and you want to put your focus on the weakest one"
Key Distinction
"It's similar but the approach to using the divergences and the later discount or later premium how you use the information is starkly different"
"The Bible says so first one now shall later be last first one now shall later be last"
Identifying the Sick Sister
"Notice that this Market here on the Dow was able to make a higher high whereas the NASDAQ was unwilling to make that higher high"
- "Two of both highs were taken out on the Dow"
- "One of two highs were taken out on ES"
- "Neither high was taken out on NASDAQ - that's the Sick Sister"
"This one couldn't even muster up enough momentum to climb higher"
"Using the Sick Sister in a consolidation Market means we're looking for the one that failed to make a higher high or lower low which is like typical SMT"
Entry Framework
"If this one's weak we're going to wait for this one to drop down into a deep discount"
- "From this low up to this high here is your optimal trade entry levels here and here's equilibrium"
- "So it trades down below here and then goes into the order block which is the consecutive down closed candles the black ones"
- "And then we have a fair value Gap here so there's your discount"
Buy Side Targets
"If you look at this High here in this High here that's buy side resting here and I don't need to go all the way up to here to find a profitable trade"
"So I can be buying in this fair value Gap inside of the order block below equilibrium inside of optimal trade entry these two respective levels here 62 and 79 on the Fib"
Visual Diagram
Sick Sister Consolidation Setup
Three-Asset Divergence Comparison
Trade Execution
"I accumulated the position inside the order block inside the fair value Gap inside of a deep discount aiming for the buy side above this High here"
"I got out above here because I knew that once it takes out the buy side it could want to rejoin what has been seen in the ES and the Dow"
"I did not need it to go up to here even though it was likely to do so"
The Catch-Up Move
"But the NASDAQ ramped all the way back up into the buy side here"
Practical Rules
"When we're buying we're trying to buy at a discount so how are you rallied up so it needs to drop down"
- "You wait for that typical opening range 30 minutes"
- "When it's dropping down we're inside the 30 minute range because it's trading into a deep discount it's inside the fair value Gap it's inside the order Block it's below equilibrium"
- "Once it did that it had a strong drop down and you have to be careful with that because it can leave that high untouched"
"It's done oh a handsome job of getting down into a cheap discount price with PD arrays that are lining up with a potential long the run out the buy side here"
Expectation in Consolidation
"That's the Sick Sister and we're in consolidation so that means it's likely to drop down to a discount and then rallied to go back above the buy side"